Quote:
Originally Posted by Laker14
Again, as a layman, your definition makes sense to me. Obviously even to me is the dynamic that the higher the supply relative to demand, the more pressure there will be to price lower, and vice versa to all that.
I'd just never heard a seller's market so strictly defined as a market wherein asking price always invites a bidding war. I'm sure that's a sign of an extreme seller's market, but I wouldn't have thought that was, by definition, a requirement.
It seems to me that being "overpriced" would be to ask considerably more than what the recent comps would indicate. I get the impression that some people use the term to mean "more than what I think anyone should pay", or "more than I'm willing to pay".
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A new home in the Villages is never negotiated. The price is the price. They will not waiver or ask more even if many buyers are interested in the same home.
Bidding wars can occur with preowned homes. If a seller has several buyers interested in his property, he/she will obviously take the highest offer.
Bidding wars do not happen with every home and are not indicative of a seller's market. It is one or a few homeowners who have a property that has plenty of buyer interest.
The last seller's market occurred when Covid lockdown and restrictions were lifted. As we all know, prices soared. We are now experiencing a softening of home prices. It is a cautionary market. Home prices can continue to decline or they can rise.